By Randy Duermyer, About.com Guide
Step 7: Learn the Risks and Benefits of the Legal Forms of Business Organization
Before you start a small or home business is the time to understand the various legal forms of business organization. Will you operate your business as a sole proprietorship, a limited liability company (LLC), an S corporation, a partnership, or a full blown C corporation?
You'll want to research issues surrounding the legal form of business organization carefully now, because your decision will affect your startup costs. It will also affect your tax situation and your personal liability for the actions and debts of the business. Take advantage of the IRS for free tax information on the various legal forms of business organization.
Finally, your decision on which legal form of business organization you will use will largely determine what steps you need to take in order to set up your business when you're ready to do so.
Step 8: Determine Your Startup Costs
Calculate your startup costs - the amount of money it's going to take to get up and running. At this point, many of your items are going to be nothing more than estimates, but do the best you can.
By completing the previous steps you should have a much clearer picture of your startup costs than before you started this exercise. Here are some additional questions that may help you not to overlook something:
**Will you need to hire specialists, like a lawyer or an accountant?
**Will you need to buy some office furniture or equipment?
**What supplies will you need on hand for Day One? Do you need to purchase a beginning inventory?
**Are you going to buy a business or franchise?
**Will you have construction costs, and if so, how much needs to be done by professionals and how much can you do yourself?
**What can you do to lower your costs?
Take your time with this step. Do some price checking and look for legitimate bargains. You're bound to think of things and adjust your estimates all the way up to your opening day.
The closer you get to opening day, the more accurate your estimate will be.
~~ TO BE CONTINUED MONDAY, 05/24/2010 ~~
Step 7: Learn the Risks and Benefits of the Legal Forms of Business Organization
Before you start a small or home business is the time to understand the various legal forms of business organization. Will you operate your business as a sole proprietorship, a limited liability company (LLC), an S corporation, a partnership, or a full blown C corporation?
You'll want to research issues surrounding the legal form of business organization carefully now, because your decision will affect your startup costs. It will also affect your tax situation and your personal liability for the actions and debts of the business. Take advantage of the IRS for free tax information on the various legal forms of business organization.
Finally, your decision on which legal form of business organization you will use will largely determine what steps you need to take in order to set up your business when you're ready to do so.
Step 8: Determine Your Startup Costs
Calculate your startup costs - the amount of money it's going to take to get up and running. At this point, many of your items are going to be nothing more than estimates, but do the best you can.
By completing the previous steps you should have a much clearer picture of your startup costs than before you started this exercise. Here are some additional questions that may help you not to overlook something:
**Will you need to hire specialists, like a lawyer or an accountant?
**Will you need to buy some office furniture or equipment?
**What supplies will you need on hand for Day One? Do you need to purchase a beginning inventory?
**Are you going to buy a business or franchise?
**Will you have construction costs, and if so, how much needs to be done by professionals and how much can you do yourself?
**What can you do to lower your costs?
Take your time with this step. Do some price checking and look for legitimate bargains. You're bound to think of things and adjust your estimates all the way up to your opening day.
The closer you get to opening day, the more accurate your estimate will be.
~~ TO BE CONTINUED MONDAY, 05/24/2010 ~~
6:42 AM |
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